MAYOR BLOOMBERG AND SPEAKER SILVER JOIN STATE AND LOCAL OFFICIALS AT GROUNDBREAKING FOR ALEXANDRIA CENTER FOR SCIENCE AND TECHNOLOGY AT THE EAST RIVER SCIENCE PARK

$700 Million Project Will Create 1,800 Construction Jobs and House More than 2,000 Bioscience Sector Employees

Bioscience Park will Include 1.1 Million Square Feet of Commercial and Lab Space for Bio and Life Science Companies based in New York City Along with 1 Acre Public Open Space

Mayor Michael R. Bloomberg and New York State Assembly
Speaker Sheldon Silver today broke ground on the Alexandria Center for Science
and Technology at the East River Science Park, a $700 million, 1.1 million
square foot center for commercial bioscience on Manhattan's East Side. The
3.7-acre site is between First Avenue and the FDR Drive and bounded on the south
by East 28th Street and on the north by East 30th Street. Joining the Mayor and
the Speaker were Downstate Chairman of the Empire State Development Corporation
(ESDC) Patrick J. Foye; Manhattan Borough President Scott Stringer; Alexandria
Real Estate Equities Inc. (ARE) Chief Executive Officer Joel Marcus; Deputy
Mayor for Economic Development and Rebuilding Daniel L. Doctoroff; New York City
Economic Development Corporation (NYCEDC) President Robert C.
Lieber; Health and Hospitals Corporation (HHC) President Alan
D. Aviles; and New York City Investment Fund (NYCIF) President & CEO Maria
Gotsch.

"As we look to diversify our economy and expand new
sectors, it's important to note that commercial bioscience is one of New York's
major growth industries, as evidenced by Alexandria's commitment of $700 million
to this innovative project," said Mayor Bloomberg. "East River Science Park will
be a premier research and development center that will enable researchers at our
great hospitals and universities to turn their ideas into commercially viable
products."

"My Assembly colleagues and I have been acting on our
High Technology Agenda for more than a decade, to ensure that when the work of
our universities, our hospitals and our scientists results in innovation, the
jobs and the economic gain that follow from that innovation accrue to our cities
and our state," said Assembly Speaker Sheldon Silver. "The research, development
and achievements that I know will occur at the East River Science Park will
reduce human suffering and save lives - and re-affirm New York's global standing
as a center for bioscience advancement and opportunity."

The East River Science Park will transform an
underutilized parcel of City-owned land on the Bellevue Hospital campus, just
north of Bellevue Hospital Center and adjacent to New York University Medical
Center, into a world class center for commercial bioscience that will include
one acre of public open space. The project is expected to create
approximately 2,000 jobs for researchers, technicians and other bioscience
professionals, and 1,800 construction jobs. The Center will be built in
two phases, the first of which will include two towers of office and laboratory
space. The first phase will be completed and allow tenants to begin
occupying space in 2009. The site will also include a glass enclosed
pavilion between the two towers and contain underground parking facilities, a
café, a conference center and ground floor retail space. When completed, East
River Science Park will hold up to 1.1 million square feet of research and
development space.

"Bioscience is an important and growing sector in New
York State's economy and a vital element of Gov. Spitzer's vision for the
state's economic future," said Patrick Foye, Downstate Chairman of the Empire
State Development Corporation. "From Cold Spring Harbor Laboratory and the North
Shore-Long Island Jewish Health System on Long Island to Memorial
Sloan-Kettering Cancer Center and Rockefeller University in Manhattan to the
Roswell Park Cancer Institute and the University at Buffalo, New York has
already established itself as a world leader in the commercialization of
bioscience research. The East River Science Park will greatly enhance that
status."

In addition to the $700 million to be invested by
Alexandria, the City of New York is providing about $13.4 million in capital
funds for the project. The State of New York is providing $27 million to
be used for infrastructure work in connection with the project. Manhattan
Borough President Scott Stringer is contributing $500,000 to the project.
Additionally, the New York City Investment Fund, the economic development arm of
the Partnership for New York City, will provide $10 million in funding to be
used for ERSP tenant improvements. The project will also receive about $5.6
million through the New York City Industrial Development Agency (NYCIDA).
About $2 million in additional Federal funds have also been secured for the
project.

"Biotech is to the 21st Century what industrial grade
steel and the internal combustion engine were to the 20th Century," said
Manhattan Borough President Scott Stringer. "New York City must be a major
player in this industry, which will be the major avenue for solving today's
pressing health, environmental, and agricultural conundrums. This new
facility is a major step in the right direction and I'm proud to be able to
support it."

"This unique science center in the city is an excellent
example of the power of a highly niche focused public private partnership," said
Joel Marcus, CEO of Alexandria Real Estate Equities. "Alexandria is honored to
be the developer of choice for this development and bring our world class
experience and expertise in building a science community that is not just bricks
and mortar, but a thriving cluster here in New York City. We will apply our
pioneering cluster development model, consisting of proprietary products and
services that meet the unique needs of the broad and diverse life science
sector, to help New York City take its rightful place among the leading clusters
world-wide as a highly recognized and respected global center for science and
technology"

"With the Alexandria Center for Science and Technology
at East River Science Park, the City is taking a major step towards successfully
translating our numerous academic and medical research assets into a vibrant
commercial bioscience cluster," said Deputy Mayor Daniel L. Doctoroff. "The
Center will contribute a great deal to correcting deficiencies in real estate
for this type of venture and will allow us to finally meet the growth potential
in this industry that we know is possible."

"On behalf of the business community, the Partnership
for New York City and the New York City Investment Fund has worked with public
officials over the past seven years to advance New York's status as a world
class center for the bioscience industry," said Maria Gotsch, President and CEO
of the New York City Investment Fund. "The Investment Fund has
committed $10 million to the East River Science Park in order to help attract
early and middle stage companies to move here and create a vibrant mix of
commercial activity at the East River Science Park and in the city."

Alexandria Real Estate Equities was selected for this
project by the New City Economic Development Corporation and Hospitals and
Health Corporation as the result of a competitive Request for Proposals.
Alexandria, a leading provider of real estate to the life sciences industry, is
focused on the ownership, operation, management and development of properties
for the industry.